As more of a good, such as television sets, is produced, the opportunity costs of producing it increases. This most likely occurs because
A) as more of a good is produced, the inputs used to produce that good will increase in price.
B) consumers would be willing to pay higher prices for the good as more of the good is produced.
C) resources are not equally well suited to producing all goods, and as more of a good is produced, it is necessary to use resources less well suited to the production of that good.
D) as more of a good is produced, the quality of that good declines, and therefore the costs of production increase.

Question

Quizplus · Accepted Answer

The principle described is the law of increasing opportunity costs, which states that as production of a good increases, the opportunity cost of producing an additional unit rises. This is because resources are not equally efficient in producing every kind of good. Initially, the most suitable resources are used, but as production expands, less suitable resources must be employed, increasing the opportunity costs.

As More of a Good, Such as Television Sets, Is